1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dmitry [639]
3 years ago
7

Suppose the Green Elf Corporation's common stock has a return of 12%. Assume the risk-free rate is 4%, the expected market retur

n is 9%, and no unsystematic surprise affected the Green Elf's return. The beta for the firm is:
Business
1 answer:
Flura [38]3 years ago
5 0

Answer:

1.6

Explanation:

Given that,

Stock has a return = 12%.

Risk-free rate = 4%

Expected market return = 9%

Stock return = Risk free return + Beta of Stock × (Market return - Risk free return)

12% = 4% + Beta of Stock × (9% - 4%)

8% = Beta of Stock × (5%)

8% ÷ 5% = Beta of Stock

1.6 = Beta of Stock

Therefore, the beta for the firm is 1.6.

You might be interested in
indirect materials are those used that enter into and become a major part of the finished product true or false
Hitman42 [59]
Yes it is true and it is correct
3 0
3 years ago
Suppose Joe is maximizing total utility within his budget constraint. If the price of the last pair of jeans purchased is $25 an
inessss [21]

Answer:

80 units

Explanation:

Given:

  • Price: $25 we have: 100 units
  • Price: $20, how many units to maximize the total utility

Let X is the number of units we need to find

As we know that, the law of equal-marginal utility a consumer spends his or her income among goods so that utilities receive from the amount spent is equal. So we use a simple rule of three:

$25    100 units of utility

$20      X

<=> 25X = 20*100

<=> X = 80 units

Hope it will find you well.

6 0
3 years ago
Why is cooperative skill important in good trade? give the reasons..​
klio [65]

Answer:

Team cooperation encourages employees to work together for the benefit of the organization. It reduces the desire of employees to complete against each other,which often never good for the business,and instead focus on working together to achieve a common goal.

3 0
3 years ago
Which is correct? please help​
choli [55]

Answer:

c

Explanation:

because if you have all new employees people won't see you as a serious company

4 0
3 years ago
Read 2 more answers
Suppose that congress hears about how well you\'re doing in your economics courses and seeks your advice on creating some public
Ksju [112]
I would suggest livelihood programs that would maximize information and proper training to study on self-employment having a small income business (food, product) or service (home utility services and technical assistance) that people can do. Provided that the government would also allow people to have start-up loan for a business. Online employment can also be opened to them for freelance opportunity, 
8 0
4 years ago
Other questions:
  • Tim Company had sales of $30,000, increase in accounts payable of $5,000, decrease in accounts receivable of $1,000, increase in
    6·1 answer
  • Butler Corporation is considering the purchase of new equipment costing $84,000. The projected annual after-tax net income from
    15·2 answers
  • Which of the following is the advantage of cash-based accounting?
    9·2 answers
  • Taking explicit account of a rival's expected response to a decision you are making is called:
    12·1 answer
  • Pauline Found​ Manufacturing, Inc., is moving to kanbans to support its telephone​ switching-board assembly lines. Determine the
    8·1 answer
  • This year henry realized a gain on the sale of an antique car that he inherited from his uncle. the buyer has promised to pay he
    9·1 answer
  • こんにちは、おはようございます。これまでの一日はどうですか?<br> Translate to get a message....
    11·2 answers
  • A computer company had $3,000,000 in research and development costs. Before recording these costs, the net income of the company
    14·1 answer
  • The managers at Alpha Corp. are closely observing trends in the industry. They are trying to identify factors that might have a
    5·1 answer
  • What could support autoedge's ability to generate economic profits over the long term?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!